Overdraft Fees Under the Microscope: NCUA’s Latest Guidance Decoded

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## Episode Summary: NSF and Overdraft Fees - What You Need to Know

In this episode, Mark Treichel interviews Joe Goldberg, former director of the NCUA's division of consumer compliance policy and outreach, about the December 2024 NCUA letter addressing consumer harm from certain overdraft and NSF fee practices.

### Key Topics Covered:

Joe Goldberg discusses NCUA's recent guidance on problematic overdraft fee practices, including:

1. Authorized Positive Settled Negative (APSN) fees - When a debit transaction is approved with sufficient funds but settles negative due to intervening transactions

2. Multiple re-presentment fees - When members are charged multiple NSF fees for the same check/ACH item being represented

3. Return Deposited Item (RDI) fees - When members are charged for depositing third-party checks that are returned

The episode also covers:
- NCUA's historical approach to overdraft oversight since 2005
- Risk management principles credit unions should consider
- The agency's current supervisory approach and expectations
- New research findings on overdraft/NSF fee revenue at credit unions

### Key Takeaways:

- Credit unions should review their overdraft programs for compliance with current guidance
- Self-identification and correction of issues is viewed favorably by NCUA
- Overdraft/NSF fees typically comprise 2-5% of credit union revenue
- The agency will continue monitoring these fees through call report data
- Credit unions should ensure fee practices are fair and clearly disclosed to members

### Featured Guest:
Joe Goldberg - Former Director, Division of Consumer Compliance Policy and Outreach at NCUA (2014-2021)

### Host:
Mark Treichel - With Flying Colors Podcast